AAA Reports Four Attorneys General Launch Probe and Prosecute Gas Price Gougers
SAN FRANCISCO--Sept. 20, 2001--Attorneys general from four states issued subpoenas, and in some cases, filed lawsuits today against gas stations for allegedly price gouging customers shortly after the September 11 terrorist attacks, reported AAA of Northern California.Florida, Illinois, Kansas, and Michigan have all taken steps toward legal action against suppliers for illegally profiteering amidst fears of possible gasoline shortages.
"Capitalizing on the fears of consumers is not only illegal, but unethical," said AAA spokesman Atle Erlingsson. "We support all efforts by state officials to control unjustifiable gas price increases, including prosecution when necessary."
-- Florida: Attorney General Bob Butterworth issued 15 subpoenas to companies that allegedly raised their prices at least 10 cents shortly after the attacks. -- Illinois: The Oil Price Information Service reports that Casey's General Stores, Inc., a large Midwestern retailer, now faces a lawsuit filed by the attorney general for raising prices to $5.00 a gallon at more than a dozen locations. -- Michigan: Attorney General Jennifer M. Granholm has filed suits against nine gas stations for allegedly increasing prices to a range of $2.91 to $5.00 a gallon. -- Kansas: The attorney general is offering a settlement agreement to the estimated 140 stations that may have raised their prices to $2.49 a gallon or more. Under the agreement, the retailers would pay a $1,000 fine ($750 going to The Sept. 11 Fund). Those who fail to comply face fines up to $10,000 per violation.
"Luckily, there were no wide-spread reports of price gouging here in California, but there was sporadic panic buying by consumers who feared gas shortages," said Erlingsson. "There is absolutely no cause for concern. Our nation's gas supply is very stable and all of our refineries and underground pipelines are in great shape."